ILMA and the National Lubricating Grease Institute (NLGI) yesterday asked the U.S. Trade Representative and Department of Commerce to add eight castor oil products and derivatives to the list of imported products — known as “Annex II” — that are exempted from the “reciprocal tariffs” imposed by President Trump. 

President Trump levied a 25% tariff on Indian goods, effective August 6, citing longstanding trade imbalances between the two countries. He then added a 25% punitive tariff, targeting India’s continued purchases of Russian oil and energy, arguing that these purchases help fund Russia’s war in Ukraine. The total tariff on most Indian goods, including castor oil products and derivatives, is now 50%.

ILMA and NLGI noted that castor oil products and derivatives are foundational materials used in today’s greases, and that the U.S. is import-dependent for these substances, with India supplying over 80% of the world’s demand. With no domestic production, ILMA and NLGI said the 50% total tariff will erode U.S. companies’ competitiveness, stimulate imports for finished greases, and likely raise prices with no global diversification of supply or substitutes.

In the letter to the USTR and Commerce, the two groups emphasized that:

• U.S. grease manufacturers lack sufficient domestic alternatives for castor oil products and derivatives, making imports critical to maintaining production.
• Tariffs distort global markets and undermine the competitiveness of U.S. grease manufacturers.
• Removing these tariffs would support downstream industries, including automotive, aerospace, and industrial equipment sectors that depend on grease performance and reliability.

ILMA and NLGI pointed out that Annex II to Executive Order 14257 already exempts products where the U.S. is import dependent, adding that castor oil products and derivatives represent a small fraction of the overall trade imbalance between the U.S. and India. Importantly, the two associations cited how stable access to castor oil products and derivatives is of strategic importance to U.S. supply chains, as well as their contribution to national security with military readiness highly dependent on greases.

“ILMA, along with NLGI, will continue engaging with policymakers to advocate for relief from the Indian tariffs trade measures and to ensure that Annex II reflects the full range of substances vital to U.S. interests and our members,” said ILMA CEO Holly Alfano. “Members are encouraged to share how tariffs on castor oil products are affecting their businesses, in order to strengthen our advocacy efforts.”